The credit crunch is hitting car buying, with planned purchases plummeting to their lowest point for two years, according to figures out today.
The number of people intending to buy a car in the next 12 months has fallen from 25% a year ago to 20% now, a poll by AA Personal Loans found.
And those planning to make a purchase will spend less on their car, the survey of 2,000 people showed.
Less to spend
Six months ago, buyers intended to spend an average of £9,827 on new purchases, but this figure has now come down to £8,851.
Scots intend to make the most purchases over the next 12 months, with 28% planning to buy a car. In contrast, just 17% of people in southern England and 17% in the Midlands and Wales are planning to replace their vehicle.
The survey also showed:
- the number of people planning to buy second-hand cars under three years old has risen from 36% to 45% in the last six months
- the number of men likely to buy a car in the year ahead has fallen by 15% in the last six months, but males planning to buy a used vehicle has gone up from 37% to 48%
- the number of women planning to buy a second-hand car has risen from 34% six months ago to 42%
- 43% of over-55s are planning a new purchase, compared with just 13% of 25 to 34-year-olds.
AA Personal Loans head Mark Huggins said: ‘Faced with rising costs including fuel – for example, the cost of unleaded petrol is now 102.8p per litre compared with 87.5p this time last year – car buyers seem to be shopping around for a more economical way of buying a reliable car.
‘A third of buyers finance their car purchase with a loan, so it’s important they shop around for the best loan rate, too.’
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